Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Wednesday tracking gains in international spot prices ahead of the US Federal Reserve monetary policy amid a subdued trend in global equity markets, analysts said.

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At 12:15 pm, gold futures for August delivery rose 0.07 percent to Rs 46,628 per 10 grams as against the previous close of Rs 46,594 and opening price of Rs 46,602 on the MCX. Silver futures traded 0.24 percent higher at Rs 48,215 per kg. The prices opened at Rs 48,127 as compared to the previous close of Rs 48,099 per kg.

“Gold prices gained ahead of the Fed’s policy amid weak US dollar. Prices were supported by steady investment demand in the safe-haven metal,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi.

Investors adopted a cautious stance and are awaiting the Federal Reserve's monetary policy statement due later today, followed by a press conference from Chairman Jerome Powell, reported Reuters. The US central bankers will also publish their first economic projections since the pandemic set off a recession in February.

In the global market, gold extended gains on Wednesday as global equity markets eased after a recent rally, while investors awaited the outcome of the Federal Reserve's meeting that is expected to shed light on the state of the economy and further stimulus.

Spot gold was up 0.1 percent at $1,716.21 per ounce, as of 0458 GMT, after posting its best day in a month on Tuesday. US gold futures also edged up 0.1 percent to $1,723.10.

“Sentiment for gold remains positive. On MCX, support for gold is placed at Rs 46,500-46,850 levels while resistance is seen at Rs 46,750-46,850 levels,” Trivedi added.

Analysts believe the yellow metal to remain volatile ahead of the outcome of the Fed policy meeting. Meanwhile, strong domestic currency and gains in the domestic equity market also limited the upside in the yellow metal.

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First Published:Jun 10, 2020 12:25 PM IST